The subtropical climate and fertile landscape create favourable agricultural conditions, with the KZN South Coast cited as one of the country’s leading macadamia nut producers. Local growers have seen volumes double over the past four years, paving the way for incredible opportunities for investors looking to capitalise on this growing global demand.

South Africa is one of the world’s leading macadamia nut producers, and while Mpumalanga tops the list for trading, KwaZulu-Natal boasted a positive macadamia nut trade balance of more than R50 million for the 2023 marketing year, according to Trade & Investment KwaZulu-Natal. Many farmers are now investing in macadamia nuts due to the possibility of earning significant profits.

The KZN South Coast, in particular, has established itself as a leading producer of premium macadamia nuts, with several renowned exporters like Mayo Macs, Mac Eden, and Coastal Macadamia at the forefront of this high-quality production.

“Mayo Macs have doubled their volumes in the last four years and again expect to double in the next four years according to the current intake figures,” commented Cobus Venter, COO of Mayo Macs, a South African macadamia processing, marketing and distribution company started in 1999. “The KZN South Coast remains one of the best-growing regions for macadamia worldwide.”

Mayo Macs owns two state-of-the-art macadamia processing facilities near Nelspruit in Mpumalanga and Paddock on the KZN South Coast, with receiving depots located in Empangeni, George and Levubu. Mayo Macs is wholly owned by the grower shareholders supplying the highest quality macadamia nuts.

Venter explained macadamia is a long-term crop without income generated in the first number of years, with additional processing capacity required alongside the increasing supply. Despite this, it’s a maturing industry in South Africa with numerous opportunities from the farm level to ultimately value adding.

“The majority of the crop is exported with nut in shell going to the Chinese markets, and kernel to the USA and European markets, with new markets being developed annually,” he continued. “We have seen an increased demand for macadamia shells with various projects looking into different applications for these.”

Outside of the Asian markets, most macadamia nuts produced in South Africa are exported to Europe and the USA. Trade & Investment KZN noted that there is still a substantial untapped opportunity to explore, with China predicted to experience a steady increase in demand, primarily due to the rising incomes of middle-class individuals and their growing expenditures on convenient and nutritious foods.

Employment creation exists throughout the production chain of macadamia nuts, from farming through to manual selection, removing the husk, drying in shed systems, cracking, organising, classifying, and packaging.

CEO of South Coast Tourism and Investment Enterprise (SCTIE), Dr Vusumuzi Sibiya, said macadamias are being used as a healthy snack, as well as being incorporated into sweets, baked goods, desserts, and other recipes, opening up the opportunities for investment in this sector.

“The KZN South Coast, which boasts incredible agricultural opportunities in sugar, bananas, and coffee, is also a key global player in the macadamia farming industry, with figures showing the massive potential for growth in this industry,” said Dr Sibiya.

“We will continue to find ways to support investors, as international market demands rise for the high-quality product grown here.”

Trade & Investment KwaZulu-Natal CEO, Sihle Ngcamu, added: “As Trade & Investment KwaZulu-Natal, we are proud that KwaZulu-Natal, particularly the KZN South Coast, plays a pivotal role in South Africa’s status as the world’s leading macadamia exporter. However, it is equally vital that we move beyond exporting raw materials and focus on agro-processing locally. To this end, our Export Unit has been collaborating with local entrepreneurs who produce macadamia-based products such as oil, nut butter, and packaged nuts. We provide training to help them meet international standards and prepare for global markets.

“Through initiatives like participation in international trade exhibitions, we are creating platforms for these entrepreneurs to showcase their products, establish networks, and secure new markets. This approach not only boosts export readiness but also drives economic growth and job creation within the province.”

Macadamia nut uses

  • Macadamias can be incorporated into cereals, snack bars, candies, cakes, cookies, spreads, savoury crusts, pestos, and much more.
  • Macadamia nuts are great for plant-based, vegetarian, and vegan diets.
  • Macadamia nuts can serve as an ingredient in various dairy alternative products, including macadamia milk, creams, cheeses, dips, sauces, and ice creams.
  • The low carbohydrate content makes macadamia nuts suitable for the Keto diet, used in Keto-friendly breads, cereals, and other baking options.
  • Macadamia oil is excellent for roasting, baking, grilling, and frying.
  • Macadamia oil can act as a base for salad dressings, marinades, sauces, and replace butter in baking.

*Source: Trade & Investment KZN: Macadamia Trade Fact Sheet

Macadamia nut fast facts

  • The macadamia nut tree originally comes from Australia.
  • Macadamia nut trees need a warm subtropical climate and regular watering.
  • It takes 7-10 years for macadamia trees to mature.
  • Macadamia nuts have the hardest outer shell among all types of nuts.
  • Macadamia nuts are available in various colours from cream-coloured to green and brown.
  • Macadamia nuts are packed with a diverse array of nutrients.
  • Macadamia oil has a high smoke point (210°C to 234°C) which is important as that’s the temperature at which it sends up smoke and gives food an unpleasant, bitter taste.

*Source: Trade & Investment KZN: Macadamia Trade Fact Sheet

Now’s the time to invest in KZN South Coast!

The KZN South Coast is well-positioned to leverage investment potential through the Eastern Seaboard Development Initiative with existing investor support provided by Port Shepstone Business Hub and the KZN South Coast’s One-Stop Shop.

The KZN South Coast continues to offer unmatched investment opportunities across a range of sectors, among them:

  • Agriculture
  • Property development
  • Manufacturing
  • Mining and beneficiation
  • Maritime | Ocean economy
  • Logistics
  • Renewable energy
  • Hinterland sites

Source: SCTIE